Wednesday Sep 23, 2009
There are other options available to borrowers instead of accepting a high interest rate loan from a payday lender. Alternatives show that there is no reason to accept unfavorable loan terms.
Tuesday Sep 1, 2009
In Britain, a revival of illegal lenders are making hay as people's incomes fall and legitimate borrowing avenues shut down.
Tuesday Jun 9, 2009
The rates on direct, person-to-person (P2P) lending are attractive; unfortunately the risk is not.
Tuesday May 5, 2009
Although credit is still tight, it appears that fewer banks have tightened loan standards as compared to a few months ago.
Tuesday Apr 28, 2009
Peer-to-peer lenders help match borrowers with lenders online. Now, one of those lenders, Prosper Marketplace, is allowing financial institutions into the game and letting them borrow money from investors as well.
Tuesday Apr 14, 2009
A new bill presented to Congress is aimed at making it harder for consumers to get payday loans, given that many take out the loans without realizing how expensive they will be to pay off.
Monday Mar 30, 2009
Asking family members for loans is becoming more common with the credit market tightening up. Here are some things to consider if you are considering making a personal loan.
Sunday Jan 25, 2009
Family and friend loans often are paid late, incomplete or forgotten all together. Steve Yoder and his son Isaac discuss how their loans and repayments have changed over the years.
Tuesday Dec 9, 2008
Using peer-to-peer loans, whether from friends and family or strangers, is a new trend for people unable to get a loan from a bank and who are looking for better rates.
Sunday Dec 7, 2008
The financial crisis has left banks with cold feet in the loan department. So where are people turning for financing? Their families.
| Type | Today | Week Ago |
|---|---|---|
| 15 Year Fixed | 4.62%  |
4.67% |
| 30 Year Fixed | 5.15% | 5.15% |
| 1 Year ARM | 3.48% |
3.51% |
| 5/1 Year ARM | 3.62% |
3.68% |
| Type | Today | Week Ago |
|---|---|---|
| Line of Credit | 4.89%  |
4.88% |
| 10 Year Loan | 7.47% | 7.47% |
| 15 Year Loan | 7.61% |
7.60% |
| Type | Today | Week Ago |
|---|---|---|
| Interest Checking | 0.28% | 0.28% |
| Money Market/Savings | 0.38% | 0.38% |
| 12 Month CD | 1.13%  |
1.15% |
| 60 Month IRA CD | 2.40% |
2.41% |
| Type | Today | Week Ago |
|---|---|---|
| Cash Back Cards | 12.66% |
12.68% |
| No Annual Fee Cards | 12.08% |
11.97% |
| Reward Cards | 12.75% |
12.61% |
| Small Business Cards | 11.01% |
10.94% |
| Student Cards | 13.77% |
13.49% |
| Platinum Cards | 12.26% |
12.11% |
A really fine piece Robert. A couple of reactions: -I agree with you that p2p lending is an innovative concept. I do fear that your excellent indictment of proper.com's specific implementation will be read as reason to dismiss other more viable p2p models. -As of today, Prosper.com's performance as per the link you provided is notably worse than when you wrote the piece. As unemployment continues to rise and middle- and working-class citizens keep struggling, I expect this trend to continue. -At the same time, the "spread" between what banks pay savers and what they charge typical borrowers has never been greater. Small business loan and credit card rates keep soaring, when they're still available at all...yet the deposits used to help fund these loans costs banks less than one percent in interest. These provides a greater than usual opportunity for those who would act as intermediaries between borrowers and savers without needing such a massive spread to stay afloat. I'm thinking of models like the Grameen Foundation at http://www.grameenfoundation.org/ , or community based credit unions that focus on local "meat and potatoes" lending, complete with careful underwriting. If models like these received even a fraction of the government support currently given to the largest banks, they could do a great deal to revive the economy on a much more sustainable basis than would programs like cash for clunkers, homebuyers tax credits, and bailouts for megabanks. In any case, thanks for giving FiLife readers good reason to pause and think before giving their hard-earned money to flawed models like prosper.com's .